Unfortunately that a Blackley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Blackley property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Blackley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Blackley with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Blackley can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Blackley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden was the the leasehold owner of a conversion flat in Blackley being marketed with a lease of a few days over fifty eight years remaining. Jayden informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. O White who, having moved into a one bedroom apartment in Blackley in October 1995. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar flats in Blackley with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2094. Having 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last Spring we were called by Dr T Wright , who owned a garden flat in Blackley in February 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable premises in Blackley with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 collected monthly. The lease elapsed on 12 October 2105. Considering the 80 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.